Spirited Fight Over Margaritas: Heublein Inc., the...

Spirited Fight Over Margaritas: Heublein Inc., the U.S. importer and marketer of Jose Cuervo Tequila, is suing distilled liquor giant Seagram Beverage Co. and E&J; Gallo Winery for “deceiving the public” by producing versions of margaritas made with beer or wine instead of tequila. Heublein said tequila is the vital ingredient in a margarita and should not be optional. In lawsuits filed in U.S. District Court in New York, Heublein alleged that Seagram and Gallo are violating federal law through “false and misleading commercial advertising and promotion and unfair competition.” In a separate action, the company asked the U.S. Bureau of Alcohol, Tobacco and Firearms to amend its regulations to prohibit any spirits label from referring to margaritas unless the product contains tequila, the strong Mexican liquor distilled from the agave plant. Heublein’s petition to the ATF cites independent research showing that consumers believe that alcoholic beverages labeled as margaritas contain tequila.